The Alternative Investment Fund Managers Directive (AIFMD) by introducing a harmonized regulatory and supervisory framework will affect alternative investment funds (AIFs) and managers (AIFMs) that operate and market in EU. UCITS funds are the only exception since they are not covered by the AIFMD.
The directive will impose requirements related to governance, organizational structure and conduct of business. At the moment, in order to comply with AIFMD, managers are enabled to choose two different paths: full AIFMD compliance, only for EU AIFMs managing EU AIFs, or National Private Placement Regime (NPPR), for any other possible combination of AIFMs and AIFs.
On the same wavelength, in Switzerland, the revised CISA took account of the AIFMD implications in the EU and removed the private placement regime, effective until March 2013, thus requiring funds marketed in the country to seek authorisation with the Swiss Financial Market Supervisory Authority (FINMA).